Earlier, people of America believed in a static home. They are not interested in changing homes after 12 months, searching for a home which is near their childerns’ school, colleges, malls and so forth. But, lately, the younger generation have started to change this idea. Homeownership rates are significantly decreased. The Younger generation is starting to realize that buying a home isn’t always better than renting. But, it’s not a whole story, in this article we are going to tell you the pros and cons of buying and renting a home. So, let’s get started.
Buying a home is cash sensitive:
If you think about buying a home in WA you need to make a huge amount of investment and that’s not affordable for the average income millennial. Though home loan options are available in the market, you need to pay down payment, loan process charges and other types of charges while availing for a loan. You need to save some money for a down payment and other loan process charges before availing request for the loan, if you want to purchase a home in WA. Going this route, however doesn’t let you live a life with peace of mind. Because, downpayment, paying a high EMI every month, home insurance payment can fall in a big debt trap. But, if you are financially stable, apart from personal expenses, if you can easily save for a down payment, and can repay EMI on time, then you are free to purchase home in WA. If you are a first time home buyer and looking for the best deals around you, a pro mortgage lender could definitely help.
Advantages of buying a home:
- Owning a home is a long-term benefit and offers security, equity and potential growth in personal wealth.
- The estimation of a home will increase in value after some time and in the event that you choose to sell, you can procure a benefit off the deal.
- At the point when you purchase a house it turns into your lawful property, which permits you more prominent opportunity in its utilization without limitations regularly implemented by a Landlord.
Home maintenance is costly:
Apart from repaying the home loan amount every month, and related fees, the first time home buyer needs to spend on home utilities, lawn care, home insurance and homeowners association fees. Then there’s a wild card- home maintenance. The cost of home maintenance varies from size of the home. Experts say that you should budget between one and three percent of the cost of your home for maintenance every year. On $200,000 home, that’s an extra $2000 to $3000 you need to save for home maintenance.
It’s hard to sell the house:
Selling a house is expensive and difficult in certain areas of WA. If you think you will not live longer in your house and want to sell it, you need to go through many formalities. You need to hire a contractor team to make your home look good and impressive. Along with that, you have to do marketing of your home on newspaper, and on the internet about selling home. Research all the legal and loopholes to make sure everything is on the up and up. Probably you have hardly any time to sleep once add trying to sell your home.
Renting than buying a home :
When it comes to renting there is a lot of freedom you will get. And some of the most common freedoms or benefits we have listed below.
Huge investment is not required: While renting a home you don’t need to spend a huge amount of money or availing a home loan request. By signing a renting contract and paying advance and rent, you can live in a house hassle-free. At every end of the month, you need to pay only rent. The home insurance cost, maintenance cost, lawn care cost are done by the homeowner. In the event, if you face any problem in the house, you don’t need to spend money on it, just call a home owner and he will pay for repairing.
High mobility: Sometimes, we understand the area, neighbourhood, local atmosphere when you live in the house more than 6 months. If we don’t like the atmosphere of the place, we can easily shift to another place hassle-free. The high level of mobility we get in renting a house is utmost. In case, if we purchase a house and we don’t like the area and social culture, we have to live there at any cost because selling a house is more difficult than buying in WA.
Less responsibility: As we said above, if you live in a rent, you have a less responsibility of the home because major repair cost, maintenance have to be borned by the lender.
It’s not so risky: Buying a home is a huge investment and more risky than renting a home. You need to save a lot of money for a down payment and every month you need to repay home loan in the form of EMI. In the event, if you are unable to repay the EMI on time, the lender will charge a penalty. But, if completely risk-free. u live in a rent, all you need to pay every month rent to a landlord which is risk-free.
No Property taxes: Property taxes are a major expenses of homeownership, and can put otherwise affordable homes outside of buyer’s price range. But, when you are renting VS owning, you have no obligation in terms of paying the property taxes on your unit. Considering just how high property taxes run in some states, that’s a major burden off your back- and potentially a lot of money in your pocket.
Disadvantage of renting a home:
- You cannot repair the house and improve its interior without asking permission from the lender.
- Many landlords are not allowed pets on their property.
- You need to pay rent on time. If you skip the amount, the landlord may also be thrown out from his home.
Over to you:
Both renting and buying a home have equal advantages and disadvantages. If your financial condition is stable you can buy a home by a loan. But, running a home is still a difficult task for you and living in a rent is fine for you.